Facebook facing lawsuit over unauthorized app purchases

California – Social networking giant Facebook has landed in hot water with parents who have been forced to pay for unauthorized in-app purchases made by their children. As reported by WebProNews, the company is facing a class action lawsuit over the issue, which may make Facebook liable for issuing refunds to hundreds of thousands of people.

As noted in the report, a California judge has ruled the lawsuit must move forward.

According to Reuters, “The April 2012 lawsuit said Facebook let children use their parents’ credit and debit cards to buy the virtual currency Facebook Credits, and violated California law by refusing refunds under its “all sales are final” policy when the parents complained.”

Facebook has devised a new payment system for in-app purchases, which now requires those who are under the age of 18 to use Facebook Payments only with the involvement of a parent or guardian.

The FTC has in the past ordered other companies including Google to refund payments billed as a result of children making unauthorized in-app purchases.

FTC Chairwoman Edith Ramirez said of the issue last year, “For millions of American families, smartphones and tablets have become a part of their daily lives… As more Americans embrace mobile technology, it’s vital to remind companies that time-tested consumer protections still apply, including that consumers should not be charged for purchases they did not authorize.”